As far as the Philippine Competition Commission (PCC) is concerned, local networks ABS-CBN and TV5 didn't have to notify or seek its permission regarding their recent acquisition deal.
This was relayed by PCC officer-In-charge Commissioner Johannes Bernabe to congressmen Wednesday, Aug. 24, during a briefing hosted by the House Committees on Legislative Franchises and on Trade and Industry.
In his presentation before the joint panel, Bernabe addressed the question on whether or not ABS-CBN and TV5's non-notificarion to the PCC of their deal could lead to the deal's cancelation.
"I can only point to section 17 of the Philippine Competition Act where it said that ageements consummated in violation of the requirement to notify, where they are so required, will result in the agreement being considered void and the parties subject to an administrative fine of between 1 percent 5 percent of the value of transaction," Bernabe said.
"However, as I mentioned earlier, at least based on a preliminary evaluation by our mergers and acquisitions office, the transaction does not seem to be notifiable," he told the solons.
Bernabe's position on the deal didn't seem to agree with that of SAGIP Party-list Rep. Rodante Marcoleta--easily the most vocal among the personalities questioning the ABS-CBN and TV5 deal, and the biggest critic of the former. Marcoleta attended the virtual briefing.
Two weeks ago, Marcoleta--who was key in the House's rejection of ABS-CBN's franchise renewal application two years ago--reckoned in a radio interview that PCC should have given its consent on the deal as it could have negative effects on competition.
“Yung Philippine Competition Commission, hanapan din sila ng parang consent dito...Kailangan malinis na mailatag yan. Dapat kunan muna ng opinyon ang PCC sapagkat yung acquisition or merger or kahit ano pang sabihin nilang partnership, kinakailangan na dumaan (The Philippine Competition Commission should be asked for consent on this...This should be done the proper way. The PCC should have a say in this because the acquisition or merger or whatever partnership this is must go through them),” the former deputy speaker said.
Marcoleta further claimed that the partnership could lead to a "monopoly" in favor of the two networks.
But according to Bernabe, another network, GMA 7, currentlly dominates the airwaves. "As far as we are concerned, GMA 7 became the dominant incumbent insofar as TV and radio broadcasting services are concerned."
"Now with ABS-CBN buying into TV5 and providing the content that TV5 apparently needs, would TV5 now be able to impose a competitive pressure on GMA 7's dominance such that it effectively fosters competition in the market? These are considerations that we have to look into," the PCC official said.
Bernabe said that the commission must answer these questions "in the context of a review whether triggered by a voluntary notification of the parties or by the commission, motu proprio exercising its initiative or power to conduct reviews of mergers which may have an impact on competition".
He further noted that its "premature" to say if the ABS-CBN and TV5 deal was good or bad for competition in the industry.
"We would to do economic analysis, market analysis, and examine the legal, commercial, and economic context in which these parties operate in able to be in a position to make findings and conclude on whether or not the transaction will substantially lessen competition in the market," he said.
"Again, to emphasize", Bernabe said, "the parties have not contacted the PCC about this deal. We do not have a copy of the investment agreement and we are basing what we are initially presenting before the commission on publicly available data and the information that we have culled as part of our initial assessment."